Business

What about the model ship building market?

Some readers of this article may find it too provocative, but it needs to be said. After spending 30 years building model ships and twelve years selling wooden and radio-controlled model ships to hobby enthusiasts, I find that there are some frustrations that never go away in the model ship building industry.

Let’s be honest; The model ship building business operates as a niche industry. However, radio-controlled and wooden model ships are, for hobby enthusiasts, a very important pastime. Rich in history, technical challenges, and an art form and legacy; Modeling ships is a very rewarding hobby. The model ship market, by its very nature, caters to a very small group of like-minded individuals with a particular passion for creating a unique work of art. It is characterized by higher prices, limited availability, and limited choices of manufacturer models. And those kits rely heavily on our skills and innovations as builders to complete a historically accurate ship model to be proud of.

Let’s examine the manufacturing and distribution chain a little more closely.

MANUFACTURERS of model ships and accessories often temporarily remove popular model ships from the market, redesign them, and then offer them back. What reasons would a manufacturer have for doing this? Have you ever considered any of these possibilities for ship model removal from the manufacturing line? 1. Improve the overall quality of the kit? 2. Do you respond to customer feedback about construction difficulties on a particular ship model? 3. Reduce manufacturing costs? 4. Relocate the manufacturing center? 5. Add additional features? 6. Improve the plans, drawings or instructions? While kits can be removed for any of the above reasons; Model ship manufacturers face the same economic realities as other types of industry. Often, it is the end result that has to be registered more strongly with a manufacturing company. Stated in stronger terms, the reason is to increase profit margins, aka we need to “make more money”!

Don’t get me wrong; To stay in business, all manufacturers have to make a fair profit. Most model ship manufacturers offer a good quality product at a reasonable price. They need to put a little more consideration into the needs of the builders. This would certainly help grow the hobby and its market share.

Another frustration for builders are manufacturers that still offer only die-cast parts in their model ships. Die-cut parts tend to become less precise with the increased number of parts produced and are often difficult to work with. Getting a keel punched from a piece of 1/8″ thick basswood without losing any major bends can sometimes be enough to drive a builder to close shop for the night. Listen to the kit builders; if you’re going to be in business, then do yourself and your customers a huge favor and get laser cutting machinery, or keep thinking and investigate the possibilities of a 3D printer.

Then there are the manufacturers that provide you with materials that are nearly impossible for the average model ship builder to work with. For example, some kits provide a cable that will become chain assembly parts. This is a sure way to turn off a novice builder. Shut down the builders and watch the market niche we occupy get even smaller, my friends.

The reason DISTRIBUTORS exist is to represent and consolidate the products of numerous manufacturers under one roof, providing inventory, warranty and technical support, often in a different country or continent than the manufacturer. This addition to the supply chain should allow smaller retailers to improve their competitiveness.

One frustration in this system, with the current emphasis on Internet sales, is the distributor competing with the retailers they are supposed to support. This can lead to reduced supply, higher prices and an unfair market (for the consumer).

And while the global marketplace has allowed us all to shorten the delivery cycle and become more price conscious and savvy, it has also become a thorn in the side of the retailer, particularly the small business. As we continue to move inventory out of bricks and mortar buildings and into the ‘cloud’, retailers have seen stock levels in North America drop to much lower levels. Cost concerns have led manufacturers to seek manufacturing in countries with lower wage levels, fewer health benefits and longer working hours. Unfortunately, these moves have also provided barriers to effective and efficient information on product availability and longer lead times in some cases.

To address product availability, longer lead times, higher shipping costs, and extremely price-conscious retailers (as an extension of their customers), distributors have been taking steps to improve their ability to provide products profitable. Sometimes, in a smaller market (such as Canada), this can mean a limited supply of products in the warehouse, a longer order cycle, and longer shipping times to take advantage of lower-cost transportation systems.
And we retailers aren’t all saints either.

Certain RETAILERS are known to dramatically increase their list prices and then offer fabulous sales, advertising 60% or more off the MSRP. I know I’m drawn to a 60% savings sign! I also know that I need to be aware of the ‘real’ regular price, what other retailers are offering for the same item, and how service differs between retailers. The net effect of this illusion is an inflated advertised discount that should leave end users (YOU) with a bad taste in their mouths and a determination to avoid retailers trying to cheat you.

Ahh, internet! Such a wonderful tool that has opened supply chains never seen before. It offers the consumer the opportunity to browse without leaving the comfort of their living room. But what about the consumer who lives in a rural area, the type who can’t get high-speed service? Or the consumer who has no Internet access at all? Or the customer who wants to touch and navigate? These customers are often overlooked in our race to go digital.

There are many retailers of flying wooden and radio controlled model ships out there. They don’t have printed catalogs for customers, they don’t have in-house stock, they’re not willing to ship samples, and they don’t accept returns without expensive restocking and handling fees. And worst of all: minimum shipping costs that do not reflect the actual cost of shipping the products you order. Many of them offer poor customer service, communicate only by email, offer no guarantees on the products they sell, offer no follow-up customer service, and rarely find an experienced retailer on staff to respond. to technical questions from wooden model ship enthusiasts. . If you don’t have a computer or aren’t comfortable using this technology, you may have a hard time finding what you need to enjoy the great hobby of model ship building.

Now, let’s say you get someone from the hobby store to call you on the phone. Who are you talking to? Could you be a model ship builder, a long term full time employee who understands the world of model ship hobbies, a small business owner, a part time student? Chances are you’re talking to a part-time employee or small business owner, and while owners and employees have a vested interest in your business, they don’t always have the expertise to address your concerns or the ability to provide a custom ship model. and search services for parts and accessories. Sometimes they can’t even get replacement parts from manufacturers for you (see manufacturers and distributors above)! The hobby market has changed in recent years and most hobby businesses are geared towards the general consumer. In other words, their focus is elsewhere and that is because sales of model ships, accessories, parts, and accessories are a very small part of their overall business.

Look for a retailer that provides products at a fair price, has both a digital and print presence, is a shipbuilder, and is enthusiastic about the hobby. You want to deal with a company that has a history in the business and responds to your phone calls and emails in a timely manner; a company that has more than one product line from a single manufacturer, a broader distribution network, and a focus on building model ships. When you find a company like that, don’t lose their contact information!

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